(December 25, 2014)
On December 23, 2014 The Davis Tax Committee (DTC) released its First Interim Report on Base Erosion and Profit Shifting (BEPS), titled: “ADDRESSING BASE EROSION AND PROFIT SHIFTING IN SOUTH AFRICA – DAVIS TAX COMMITTEE INTERIM REPORT” for public comment. According to a Media Statement in which the release of the report is announced, the report was submitted to the South African Minister of Finance on June 30, 2014, who now authorized the DTC to release the report for public comment. The First Interim Report on BEPS is now available for public comment on the DTC website.
Following the announcement by the Minister of Finance in the 2013 Budget to set up a tax review committee, the Davis Tax Committee (DTC) was appointed on July 17, 2013 to inquire into the role of South Africa’s tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability. The DTC is expected to take into account recent domestic and international developments and, in particular, the long term objectives of the National Development Plan. On the international front, the DTC is required to address concerns about “base erosion and profit shifting” (BEPS), especially in the context of corporate income tax, as identified by the OECD and G20. In this regard, the DTC set up a BEPS Sub-committee which prepared this interim report that sets out the DTC’s position as at September 30, 2014.
According to the Media Statement comments on this first interim report on BEPS can be sent by e-mail to or by post. The closing date for comments is March 31, 2015.
The report is quite extensive and covers the following areas:
- Introductory document (39 pages);
- Action 1: Digital economy (56 pages);
- Action 2: Hybrid mismatches (67 pages);
- Action 5: Harmful tax practices (20 pages);
- Action 6: Treaty abuse (73 pages);
- Action 8: Transfer pricing with regard to intangibles (22 pages);
- Action 13: Transfer pricing documentation (20 pages);
- Action 15: Develop a multilateral instrument (4 pages);
- Summary of recommendations of the Davis Tax Committee on the OECD September 2014 deliverables (36 pages).
Click here to be forwarded to the website of the DTC, where you can find separate links to the different areas discussed in the First Interim Report on Base Erosion and Profit Shifting (BEPS) as released by the DTC.
For further information click here to be forwarded to a Media Statement that was issued by the DTC with respect to the release of its First Interim Report on Base Erosion and Profit Shifting (BEPS) for public comment. The Media Statement a.o. contains the (e-)mail address to which the public can send its comments.
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